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different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

To formulate a marketing strategy, one must
A) identify and analyze a target market and develop a marketing mix to satisfy individuals in that market.
B) develop a statement of what is to be accomplished through marketing activities.
C) develop plans for implementation and control.
D) develop an adequate marketing control process.
E)
determine marketing objectives.
Ans: A
AACSB Outcomes: C
DC: .32
DF: .56
LO: 1
Topic: Understanding the
Strategic Planning Process
Type: CH

15.

The marketing plan is
A) a plan of all aspects of an organization's business strategy.
B) written differently for each SBU.
C) a written document detailing activities to be performed to implement and control marketing actions.
D) designed to specify not only marketing, but all other functional areas of business activities as well.
E)
updated only periodically.
Ans: C
AACSB Outcomes: C
DC: .35
DF: .63
LO: 1
Topic: Understanding the
Strategic Planning Process
Type: KN

The strategic planning process begins with
A) the development of an organizational mission statement.
B) the development of marketing strategy.
C) an analysis of the marketing environment.
D) an analysis of target markets.
E)
the development of a marketing plan.
Ans: C
AACSB Outcomes: C
LO: 2
Topic: Assessing Organizational Resources and
Opportunities
Type: KN

ÂŠ 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

Full file at http://testbank360.eu/test-bank-marketing-foundations-3rd-edition-pride
18.

A strategic window is
A) the right combination of circumstances and timing that permit an organization to take action to reach
a particular target market.
B) what determines the factors that are most important in making a market attractive or strong.
C) customers' requirements or desired benefits.
D) a temporary period of optimum fit between the key requirements of a market and the particular
capabilities of a firm competing in that market.
E)
the process that seeks information about events and relationships in a company's outside environment.
Ans: D
AACSB Outcomes: C
DC: .27
DF: .49
LO: 2
Topic: Assessing Organizational
Resources and Opportunities
Type: KN

ÂŠ 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

22
23.

Chapter 2: Planning Marketing Strategies
A competitive advantage exists when a
A) firm matches a core competency to opportunities it has discovered in the marketplace.
B) firm does marketing better than its competitors.
C) combination of circumstances and timing allow a firm to reach an attractive target market.
D) firm observes a fit between the key requirements of a market and its own capabilities.
E)
firm has a strong marketing plan.
Ans: A
AACSB Outcomes: C
DC: .50
DF: .57
LO: 2
Topic: Assessing Organizational
Resources and Opportunities
Type: KN

ÂŠ 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

Full file at http://testbank360.eu/test-bank-marketing-foundations-3rd-edition-pride
29.

Which of the following is not a characteristic of a marketing objective?
A) It is consistent with both business-unit and corporate strategy.
B) It is expressed in clear, simple terms.
C) It is written so that it can be measured accurately.
D) It specifies a time frame for its accomplishment.
E)
It clearly identifies how marketing strategy will be implemented.
Ans: E
AACSB Outcomes: A; C
LO: 3 Topic: Establishing an Organizational Mission and
Goals
Type: KN

34.

Which of the following statements is incorrect?
A) Of the three levels of planning, corporate strategy is the broadest.
B) Business-unit strategy should be consistent with the corporate strategy.
C) Marketing strategy should be consistent with both the business-unit and corporate strategies.
D) Strategic planning begins at the marketing level and proceeds through business-unit and corporate
levels.
E)
Strategic planning begins at the corporate level and proceeds through business-unit and marketing
levels.
Ans: D
AACSB Outcomes: A; C
LO: 4
Topic: Developing Corporate, Business-Unit, and
Marketing Strategies
Type: KN

ÂŠ 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

Full file at http://testbank360.eu/test-bank-marketing-foundations-3rd-edition-pride
41.

The Boston Consulting Group's matrix is based on the
A) idea that a firm's market share and market attractiveness are the important factors for a marketing
strategy.
B) assumption that a firm's actions have a profitable impact on marketing strategy.
C) business position and market attractiveness of the firm.
D) philosophy that a product's market growth rate and its market share are important determinants of its
marketing strategy.
E)
idea that a product's market growth rate and market attractiveness determine the marketing strategy.
Ans: D
AACSB Outcomes: C
DC: .28
DF: .85
LO: 4
Topic: Developing Corporate,
Business-Unit, and Marketing Strategies
Type: KN

Chapter 2: Planning Marketing Strategies
According to the Boston Consulting Group, question marks are characterized as products
A) having a small share of a growing market and requiring large amounts of cash to build market share.
B) generating more cash than is required to maintain share.
C) encompassing the greatest number of products.
D) existing at a cost disadvantage and revealing few opportunities for growth at a reasonable cost.
E)
having substantial reported profits but needing a lot of cash to finance the rate of growth.
Ans: A
AACSB Outcomes: C
DC: .24
DF: .56
LO: 4
Topic: Developing Corporate,
Business-Unit, and Marketing Strategies
Type: KN

Which of the following statements about the marketing mix is incorrect?
A) The selection of the target market serves as the basis for the creation of the marketing mix.
B) The elements of the marketing mix are sometimes referred to as marketing mix variables.
C) Each element of the marketing mix must be precisely matched with the needs of the target market.
D) Once a marketing mix has been created for a particular target market, it cannot be changed until a new
strategic window opens.
E)
Each element of the marketing mix must be precisely matched with the other elements of the
marketing mix.
Ans: D
AACSB Outcomes: A; C
LO: 4
Topic: Developing Corporate, Business-Unit, and
Marketing Strategies
Type: CH

49.

Business decisions made in creating a marketing mix
A) are made before a target market is identified.
B) are unchangeable once they are agreed on by management.
C) are only as good as the organization's understanding of the needs of the target market.
D) usually take place when a strategic window is open.
E)
must always be consistent with the firm's opportunities.
Ans: C
AACSB Outcomes: A; C
DC: .17
DF: .81
LO: 4
Topic: Developing Corporate,
Business-Unit, and Marketing Strategies
Type: CH

ÂŠ 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

Full file at http://testbank360.eu/test-bank-marketing-foundations-3rd-edition-pride
52.

Which of the following is not a purpose of the marketing plan?
A) Communicate internally with employees
B) Assign tasks and responsibilities for implementation
C) Specify the allocation of resources
D) Monitor the performance of a marketing strategy
E)
Serve as a contract with the customer
Ans: E
AACSB Outcomes: A; C
LO: 5
Topic: Creating the Marketing Plan

Type: CH

56.

Hallaway Corporation's new shampoo, VS, is faltering badly in the market. Hallaway's marketing personnel
are unsure who is responsible for various marketing tasks, when these tasks are to be completed, or what
resources have been allocated. Hallaway Marketing Director Carolyn Willis said that the problem is that VS
has the most poorly written ___________ she has ever seen.
A) marketing plan
B) competitive plan
C) implementation plan
D) media schedule
E)
product specification sheet
Ans: A
AACSB Outcomes: A
LO: 5
Topic: Creating the Marketing Plan
Type: AP

ÂŠ 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

28
58.

Chapter 2: Planning Marketing Strategies
The Berkdorf Shoe Company is currently writing its marketing plan. Berkdorf is aware of possible new
legislation that will limit the amount of glue that can be used in shoes that are marketed as “genuine leather”
and considers this in its marketing plan. Which component of the marketing plan does this information most
likely fit into?
A) Executive summary
B) Marketing strategies
C) Opportunities and threats
D) Strengths and weaknesses
E)
Marketing objectives
Ans: C
AACSB Outcomes: A
LO: 5
Topic: Creating the Marketing Plan
Type: AP

Sam’s employer is currently developing a new marketing strategy. The top managers have developed the
marketing strategy and have given it to Sam so that he can now develop an implementation plan. Sam’s
company will most likely end up with which type of strategy?
A) Decentralized
B) Rigid
C) Intended
D) Centralized
E)
Realized
Ans: E
AACSB Outcomes: A
LO: 6
Topic: Implementing Marketing Strategies
Type: AP

ÂŠ 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

30
69.

Chapter 2: Planning Marketing Strategies
Kate is upset because the bank did not credit her account with a deposit, which resulted in a returned check
to Kateâ&#x20AC;&#x2122;s mortgage company. When she was told the branch manager was on vacation, she expected to have
to wait two weeks to have the matter resolved. Kate was surprised when the receptionist apologized for the
error and drafted a letter to the mortgage company while Kate waited. The bank was engaging in which type
of decisionmaking strategy?
A) Employee empowerment
B) Centralized management
C) Structured
D) Immediate-focused
E)
Product-focused
Ans: A
AACSB Outcomes: A
LO: 6
Topic: Implementing Marketing Strategies
Type: AP

In a traditional organization, marketing decisions are generally
A) very decentralized.
B) centralized at the top levels of the organization.
C) made by frontline employees.
D) made by frontline managers.
E)
made only by the CEO.
Ans: B
AACSB Outcomes: A; C
LO: 6
Page: 42
Topic: Implementing Marketing Strategies
Type: CH

ÂŠ 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

Full file at http://testbank360.eu/test-bank-marketing-foundations-3rd-edition-pride
75.

Key factors in determining the best organizational structure for a marketing unit are the
A) preferences of top management.
B) fiscal resources of the firm.
C) number of employees.
D) diversity of the firm's products and the characteristics and needs of the people in the target market.
E)
skill levels of employees.
Ans: D
AACSB Outcomes: C
DC: .43
DF: .94
LO: 6
Topic: Implementing Marketing Strategies
Type: KN

76.

According to the textbook, which of the following statements is most accurate?
A) A small company always should organize by products, and a large organization should organize by
regions.
B) There is no single approach to organizing a marketing unit that works well in all businesses.
C) Some organizations, by nature, have no specific internal structure.
D) Organizing by type of customer works best for companies with few groups of customers.
E)
Using several bases for organizing leads to uncoordinated marketing management.
Ans: B
AACSB Outcomes: A; C
DC: .74
DF: .57
LO: 6
Topic: Implementing Marketing Strategies
Type: CH

77.

If you were a marketing manager, under which type of organizational structure would you most likely be
working if your firm were a large business with centralized marketing operations?
A) Organization by type of customer
B) Functional organization
C) Organization by regions
D) Organization by products and regions
E)
Organization by products
Ans: B
AACSB Outcomes: A; C
LO: 6
Topic: Implementing Marketing Strategies
Type: CH

78.

A disadvantage of organizing a firm's marketing unit by products is that
A) product managers do not have adequate control over marketing activities.
B) large firms might experience coordination problems.
C) it can be rather expensive.
D) specialized marketing assistance is less readily available.
E)
marketing flexibility is limited.
Ans: C
AACSB Outcomes: C
LO: 6
Topic: Implementing Marketing Strategies

ÂŠ 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

32
81.

Chapter 2: Planning Marketing Strategies
Organizing a marketing unit by regions works well for a company that
A) produces and markets diverse products.
B) is small and has a centralized marketing operation.
C) markets products throughout the nation.
D) has several groups of customers whose needs and problems are different.
E)
offers specialized marketing mixes for different products.
Ans: C
AACSB Outcomes: C
DC: .27
DF: .82
LO: 6
Topic: Implementing Marketing Strategies
Type: KN

82.

Suppose a customer calls Ann's office at Frito-Lay in Atlanta. The customer has a friend in Seattle who was
just telling her about a new snack Frito-Lay has introduced that is selling rapidly. Ann's office does not
market this product and at the present knows very little about it. Based on this information, this firm is most
likely organized according to which of the following?
A) Function
B) Product
C) Region
D) Customer
E)
Market
Ans: C
AACSB Outcomes: A; R
DC: .58
DF: .87
LO: 6
Topic: Implementing Marketing Strategies
Type: AP

ÂŠ 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

Full file at http://testbank360.eu/test-bank-marketing-foundations-3rd-edition-pride
86.

When an organization attempts to control its marketing activities, it may find it difficult to
A) determine their effect on sales volume.
B) use the information it collects.
C) obtain the necessary information.
D) get the accounting department to cooperate.
E)
develop a marketing plan.
Ans: C
AACSB Outcomes: C
DC: .43
DF: .60
LO: 6
Topic: Implementing Marketing Strategies
Type: KN

ÂŠ 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

34
92.

Chapter 2: Planning Marketing Strategies
The time lag between the performance of marketing activities and their results
A) limits the marketing manager's ability to measure the effectiveness of marketing activities.
B) facilitates the ability to measure performance.
C) increases the chance of accurate measurement.
D) limits the amount of money to be spent on measurement.
E)
increases the likelihood of having a successful marketing mix.
Ans: A
AACSB Outcomes: C
DC: .22
DF: .84
LO: 6
Topic: Implementing Marketing Strategies
Type: CH

Use the following to answer questions 93-96:
Morton-Norwich Products, Inc., produces Morton salt as well as other chemicals and household products.
For several years, the company has been trying to move into the pharmaceutical market but has suffered
from strategy failures. Low-sodium diets and salt substitutes lowered the sales of salt, Morton's largest and
most profitable product. Although the company produces a salt substitute, heavy promotion of it could be
viewed as an incrimination of salt.
These problems have led to a company reassessment. A decision has been made to seek growth in the fields
of household products and specialty chemicals, abandoning plans for pharmaceuticals. The company's drug
subsidiary was sold to Procter & Gamble for $371 million, and a specialty-chemical business was purchased
from Philip Morris for $50 million. Morton's new areas of concentration should require less spending on
research and development. Chemicals have also been experiencing higher sales. Morton has a leading
position in adhesives, one area of the chemical industry not adversely affected by economic cycles. The
company also hopes to purchase other companies in market niches where it could apply its marketing
expertise. Spending its newly acquired cash reserve is also important to prevent unwelcome acquisition
attempts.
93.

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96.

Which of the following is the best example of an environmental threat for Morton-Norwich?
A) Low-sodium diets
B) Development of a new salt substitute by Morton-Norwich
C) Sale of the firm's drug subsidiary
D) Purchase of the specialty-chemical business
E)
Change in senior management at Morton-Norwich
Ans: A
AACSB Outcomes: A; R
LO: 2
Topic: Assessing Organizational Resources and
Opportunities
Type: AP

Use the following to answer questions 97-99:
Candy Cones Company (CCC) began operations five years ago selling made-to-taste ice cream to college
students. The process involves grinding up candy bars or cookies to make customer-selected flavors of ice
cream. The original shops were all run by the owner-founder, but CCC has experienced such rapid growth
that management is considering franchising CCC shops in several new locations. The owner has called in the
Smarter Marketing Consulting Group to help plan for the future.
97.

If Smarter Marketing develops a framework and an entire set of marketing activities to perform, it will have
A) monitored the environment.
B) created a marketing plan.
C) completed the marketing planning cycle.
D) set up a strategic business unit.
E)
determined marketing objectives.
Ans: B
AACSB Outcomes: A; R
LO: 5
Topic: Creating the Marketing Plan
Type: AP

98.

Smarter Marketing believes that it is the perfect time for CCC to attempt to reach the large college market
because of CCC's particular competencies and the fact that enrollments are ready to peak. This limited
period is termed a
A) strategic window.
B) strategic door.
C) strategic plan.
D) marketing objective.
E)
long-range plan.
Ans: A
AACSB Outcomes: A; R
LO: 2
Topic: Assessing Organizational Resources and
Opportunities
Type: AP

99.

CCC is informed that its ice cream shops are in a low-growth market, although they have a high market
share. It is considering purchasing another business that has high share and high growth potential. If the
purchase is made, CCC's BCG matrix will include which types of SBUs?
A) Cash cow and problem child
B) Star and dog
C) Star and question mark
D) Cash cow and star
E)
Cash cow and dog
Ans: D
AACSB Outcomes: A; R
LO: 4
Topic: Developing Corporate, Business-Unit, and
Marketing Strategies
Type: AP

100. T F Through the process of strategic planning, a firm establishes an organizational mission and goals,
corporate strategy, marketing objectives, marketing strategy, and a marketing plan.
Ans: True
AACSB Outcomes: C
LO: 1
Topic: Understanding the Strategic Planning Process
101. T F The strategic planning process begins with a detailed analysis of the organization's strengths and
weaknesses and the identification of opportunities and threats within the marketing environment.
Ans: True
AACSB Outcomes: C
LO: 1
Topic: Understanding the Strategic Planning Process
102. T F A marketing strategy is a written document that specifies the activities to be performed to implement
and control a firm's marketing activities.
Ans: False
AACSB Outcomes: C
LO: 1
Topic: Understanding the Strategic Planning Process

ÂŠ 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

ÂŠ 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

Full file at http://testbank360.eu/test-bank-marketing-foundations-3rd-edition-pride
117. T F Corporate strategic planners focus on dimensions such as competition, diversification,
differentiation, environmental focus, and interrelationships among SBUs.
Ans: True
AACSB Outcomes: C
LO: 4
Topic: Developing Corporate, Business-Unit, and
Marketing Strategies
118. T F A strategic business unit is not self-supporting in terms of sales, markets, production, and other
resources.
Ans: False
AACSB Outcomes: C
LO: 4
Topic: Developing Corporate, Business-Unit, and
Marketing Strategies
119. T F A market is a group of individuals and/or organizations that have needs for products in a product
class and have the ability, willingness, and authority to purchase these products.
Ans: True
AACSB Outcomes: C
LO: 4
Topic: Developing Corporate, Business-Unit, and
Marketing Strategies
120. T F The Boston Consulting Group approach is based on a philosophy that a product's market growth rate
and its market share relative to competition should be helpful in determining its marketing strategy.
Ans: True
AACSB Outcomes: C
LO: 4
Topic: Developing Corporate, Business-Unit, and
Marketing Strategies

ÂŠ 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

ÂŠ 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

Full file at http://testbank360.eu/test-bank-marketing-foundations-3rd-edition-pride
Ans: False

ÂŠ 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be
different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.